r5 e trial 2 changeover from rimula •energy saving …€¦ · drivers for hddeo technology...

POSSIBLE TRIALS

Shell Rimula R4 L 15W-40Shell Rimula R4 L 15W-40

Better wear and acid control+ fuel economy

Shell Rimula R5 E 10W-40• Energy Saving Shell Rimula R5 E 10W-40• Energy Saving Shell Rimula R5 E 10W-40• Energy Saving

TO

TRIAL 2TRIAL 3

FROM

TO

TO

Changeover from Rimula R4 to alternative products

Cesar LizcanoShell Oil Products

Copyright of Shell Lubricants 1February 2014CONFIDENTIAL New Shell Rimula R4 X & Shell Rimula R5 E

Better wear and acid control

Better deposit control

Shell Rimula R4 L 15W-40• Low Emissions• Extra Life – Improved Protection


Better wear and deposit control

+ DPF protection

TRIAL 1Up-Sell

(No trial)

FROM

Shell Oil Products

Copyright of Shell Lubricants

DEFINITIONS AND CAUTIONARY NOTE

The companies in which Royal Dutch Shell plc directly and indirectly owns

investments are separate entities. In this presentation “Shell”, “Shell group”

and “Royal Dutch Shell” are sometimes used for convenience where

references are made to Royal Dutch Shell plc and its subsidiaries in general.

Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in

general or to those who work for them. These expressions are also used where

no useful purpose is served by identifying the particular company or

companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used

in this presentation refer to companies in which Royal Dutch Shell either

directly or indirectly has control. Companies over which Shell has joint control

are generally referred to as “joint ventures” and companies over which Shell

has significant influence but neither control nor joint control are referred to as

“associates”. The term “Shell interest” is used for convenience to indicate the

direct and/or indirect ownership interest held by Shell in a venture, partnership

including (without limitation): (a) price fluctuations in crude oil and natural gas;

(b) changes in demand for Shell's products; (c) currency fluctuations; (d)

drilling and production results; (e) reserves estimates; (f) loss of market share

and industry competition; (g) environmental and physical risks; (h) risks

associated with the identification of suitable potential acquisition properties and

targets, and successful negotiation and completion of such transactions; (i) the

risk of doing business in developing countries and countries subject to

international sanctions; (j) legislative, fiscal and regulatory developments

including regulatory measures addressing climate change; (k) economic and

financial market conditions in various countries and regions; (l) political risks,

including the risks of expropriation and renegotiation of the terms of contracts

with governmental entities, delays or advancements in the approval of projects

and delays in the reimbursement for shared costs; and (m) changes in trading

conditions. All forward looking statements contained in this presentation are

Copyright of Shell Lubricants 2Copyright of Shell Lubricants 2

direct and/or indirect ownership interest held by Shell in a venture, partnership

or company, after exclusion of all third-party interest. This presentation

contains forward looking statements concerning the financial condition, results

of operations and businesses of Shell and the Shell Group. All statements

other than statements of historical fact are, or may be deemed to be, forward-

looking statements. Forward-looking statements are statements of future

expectations that are based on management's current expectations and

assumptions and involve known and unknown risks and uncertainties that

could cause actual results, performance or events to differ materially from

those expressed or implied in these statements. Forward-looking statements

include, among other things, statements concerning the potential exposure of

Shell and the Shell Group to market risks and statements expressing

management’s expectations, beliefs, estimates, forecasts, projections and

assumptions. These forward looking statements are identified by their use of

terms and phrases such as "anticipate", "believe", "could", "estimate", "expect",

"goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project",

"risks", "seek", "should", "target", "will" and similar terms and phrases. There

are a number of factors that could affect the future operations of Shell and the

Shell Group and could cause those results to differ materially from those

expressed in the forward looking statements included in this presentation,

conditions. All forward looking statements contained in this presentation are

expressly qualified in their entirety by the cautionary statements contained or

referred to in this section. Readers should not place undue reliance on forward

looking statements. Additional factors that may affect future results are

contained in Shell's 20-F for the year ended 31 December 2014 (available at

www.shell.com/investor and www.sec.gov ). These factors also should be

considered by the reader. Each forward looking statement speaks only as of

the date of this presentation, 9 June 2015. Neither Shell nor any of its

subsidiaries nor the Shell Group undertake any obligation to publicly update or

revise any forward looking statement as a result of new information, future

events or other information. In light of these risks, results could differ materially

from those stated, implied or inferred from the forward looking statements

contained in this presentation.

CHANGEOVER OPTION # 1 (PREFERRED)

Better wear and acid control+ fuel economy

Shell Rimula R5 E 10W-40• Energy Saving Shell Rimula R5 E 10W-40• Energy Saving Shell Rimula R5 E 10W-40• Energy Saving

TOFROM

It is possible to up-sell Rimula R5 E 10W-40 and procure Oil Drain

Copyright of Shell Lubricants 3February 2014CONFIDENTIAL

It is possible to up-sell Rimula R5 E 10W-40 and procure Oil Drain

Interval (ODI) extension of up to 30% and fuel savings of up to 1%(engine must not require API CI-4 Plus or Mack EO-N Premium Plus)

Products are compatible, flushing is not required

Type of service to be used: LubeAnalyst or local UOA service

.

CHANGEOVER OPTION #2 (ALTERNATIVE OPTION)



Better wear and deposit control

+ DPF protection

TOFROM

Rimula R4 L has showed robust Oil Drain Interval (ODI) with


Rimula R4 L has showed robust Oil Drain Interval (ODI) with

sulphur content up to 500 ppm. Improvements are possible with

higher sulphur content depending on operation and mechanical

conditions, but it must be individually verified


Type of service to be used: LubeAnalyst or local UOA service

.

CHANGEOVER OPTION #3 (FEASIBLE, BUT NOT PREFERRED)

TOFROM

Superior Triple Protection


Rimula R4 X has more approvals than Rimula R4 15W-40 CI-4 Plus. It

performance is robust in fleets pre-2007 and some post 2007 without

DPF or SCR. It is suitable for engines equipted with EGR (engine must not

require API CI-4 Plus or Mack EO-O Premium Plus)


.

FUEL ECONOMY WITH PREMIUM SPIRAX LUBRICANTS

Lubrizol reports the following benefits with low viscous synthetic oils


If a truck travels120,000 kilometers per year, it would represent 12,700 AG of fuel consumption per year and up to 381 AG per year of potential fuel savings per truck

.

SHELL RIMULA R5 E – ENERGY SAVING

In laboratory tests, synthetic technology 10W-40 oils such as Shell Rimula R5 E have been shown to

improve fuel economy by up to 1.02% compared with an SAE 15W-40 oil.

Fuel consumption measured under on-highway and city driving conditions in a MAN Euro 4 engine test rig – comparison of Shell Rimula R5 E 10W-40 with SAE 15W-40 oil

0.67% fuel economy

1.02% fuel economy

Resists breakdown over 30% longer than the average of several competitors’ API CI-4 oils ensuring protection and longer oil life, also reaching critical bearings up to 48% faster under freezing conditions, improving oil flow under low-temperature start-up conditions where conventional oils may fail to pump


Highway City

Fuel

con

sum

ptio

n, %

SAE15W-40 Shell Rimula R5 E 10W-40

economy benefit

economy benefit

.

SHELL RIMULA R5 E 10W-40

• Proven to increase fuel economy up to 1%1

• Reduces maintenance costs and prolongs oil drain intervals2

• Reaches an engine’s critical bearings up to 48% faster when cold3

• Delivers excellent engine protection in challenging environments4

In numbers:

For a Class 8 truck with oil drain intervals at each 20,000


1 Based on fuel consumption measurements under urban driving conditions in a MAN Euro 4 engine relative to SAE 15W-40 oil. 2 Up to 30% longer oil life in standard industry testing when compared to many competitor oils Based on ACEA PDSC oxidation test CEC L-085-99.3 Based on engine oil pumping time measurements to critical oil pressure in a US 2002 emission compliant engine at an independent laboratory. 4 Exclusive technologically advanced formulation that provides Tripe Protection for your engine (Acid, Deposit and Wear control)

For a Class 8 truck with oil drain intervals at each 20,000 obtaining 6 MPG and paying $3.5 per gallon in fuel costs, a 1% fuel savings would:

� Produce savings worth 10 times the typical incremental price for R5E vs R4

� Pay for over half of the total cost of lubricants over a full year

.

AN INTRODUCTION TO

HEAVY DUTY TRENDS /


TRENDS / OEM UPDATE Cesar LizcanoShell Oil Products US

DRIVERS FOR HDDEO TECHNOLOGY

Pushing innovations

in Engine Hardware

and Engine Oils

Reduced Emissions

Reduced Fuel Extended

Reduced Fuel Consumption

Increased Power Output

Extended Equipment

Life

Extended Service Intervals

Market Drivers

CHANGES FOR THE HEAVY DUTY ENGINEIncreased energy efficiency and power output� Improved fuel injection systems

� Turbocharging, VGT� Turbocharging, VGT

Aftertreatment Devices� NOx control (EGR)

� Selective Catalytic Reduction (SCR)

� Urea metering

� DPF soot regeneration

Changing Engine Operating Conditions� Operating Temperature

� Engine down-speeding

CHANGES FOR THE HEAVY DUTY ENGINE

Hybridization - eg Volvo, Daimler� Integration of electric motors within

driveline

Factors affecting hardware� Reduction in fuel Sulphur

ROCKER SHAFTS

� Reduction in fuel Sulphur

� Clean fuels (LNG)

� Renewable fuels

Oil quality monitoring

Improved Oil Filtrations Systems

Parts Coatings

Chrome

Nitrocarburized

Oxide

OPPORTUNITIES FOR HEAVY DUTY ENGINE OILS

Maintain Diesel Particulate Performance� Lower oil ash levels = Longer particulate trap

service

Extend Catalyst Efficiency Lifetime� Driving sulphur and phosphorus levels down

Exhaust gas recirculationMore phosphorus needed in high wear

CO2???� More phosphorus needed in high wear

environment

Improved Soot Control� Improved dispersants and high quality base oils

Extended Service Interval� Increased additive treat rates and higher quality

base oils

Chemical Limits � Low SAPS (Sulphated ash, Phosphorus, Sulphur)

Fuel Economy� Lower viscosity grades – higher VI base stocks

� Next generation engine oils (PC-11)

CO2???

ADVANCING INNOVATION THROUGH JOINT DEVELOPMENTS

The most effective way to develop lubricants for specific applications is through partnership and collaboration

ExamplesExamples

� Engine oil for bioethanol fueled engines

� Ultra low viscosity fluid for use in a Gordon Murray fuel efficient concept vehicle

� Develop Factory Fill fluids major Global engine manufacturers

CLOSE TO CUSTOMERS IN THEIR OPERATIONS DELIVERING GREAT RESULTS

Shell partners with Fleets utilizing equipment from OEMs such as: PACCAR, Detroit Diesel, Scania and

VolvoAnd technical relationships

with many more

THE CHALLENGE –LOWEST VISCOSITY FOR PROTECTION AND DURABILITY

WHY LUBRICANTS MAKE A DIFFERENCE� Reduce friction and wear

� Viscosity is key

� Understand other keys for success

� Enable new technology for emissions reduction

LOWEST VISCOSITY FOR PROTECTION AND DURABILITY

INNOVATION

� Unique technology

� Developed with Daimler

� Helps to reduce fuel consumption

SMARTER PRODUCTS: SHELL RIMULA R6 LME

Every Euro-6 truck produced

in Germany is currently*

being filled at the factory

with Shell Rimula R6 LME

technology.

� Helps to reduce fuel consumption

and lower exhaust emissions

*As of October 2014

INNOVATIONLUBRICATION SCIENCELubrication science enabling

� Precise Measurements

� Predictive Performance Modelling

� Screening Technology Options

Application to real systems� Insight into oil development

� Evaluation of new chemistries

COLLABORATIONWITH OEMSDeveloping more efficient and cleaner products and collaborating

on developments in engine technology requirements for lubricants

and fuels technology.

Helping Daimler set a new standard in truck fuel efficiency in its Record

Run, using exclusively Shell FuelSave Diesel and Shell Rimula R6 LME.

IMPRESSIVE AVERAGE FUEL SAVING FOR THE NEW MERCEDES-BENZ ACTROS EURO VI VS. THE CURRENT ACTROS

4.5%

Copyright of Shell Lubricants 19

COLLABORATIONDRIVING LONG-TERM CHANGE

LEVEL 3CO-ENGINEER

hardware and fluids for optimal efficiency


FUEL

ECO

NO

MY

BEN

EFIT

LEVEL 1 IDENTIFY

the best fuel economy Lubricant from the current portfolio

LEVEL 2 DEVELOP

bespoke products for current driveline

components

LEVEL OF CO-OPERATION

APPLICATIONSHELL LUBRICANTS SERVICES

CHOOSE USE IMPROVE


IMPROVING

� Performance� Reliability� Fuel economy� Efficiency

REDUCING

� Spare parts cost� Labour costs� Breakdowns� Energy costs

…..while at the same time…..

SHELL LUBRICANTS TECHNOLOGY LEADERSHIP

Shell Oil Products

PC-11 HEAVY DUTY ENGINE OIL: THE FUTURE OF FUEL ECONOMYCesar Lizcano

THE NEXT EVOLUTION OF HEAVY DUTY MOTOR OIL

THE NEED FOR A

FUEL ECONOMYCHANGES IN HARDWARE

Shell Projects & Technology CONFIDENTIAL

THE NEED FOR A NEW CATEGORY OF

MOTOR OIL:

PC-11

GREENHOUSE GAS (GHG) STANDARDS

CHANGES IN ENGINE TECHNOLOGY

ENGINE TEST OBSOLESCENCE

10 YEARS SINCE CJ-4

PC-11 SHOULD PROVIDE IMPROVEMENTS IN:

� Oxidation stability� Aeration benefits� Shear stability� Scuffing/Adhesive Wear� Compatibility with biodiesel blends

TWO SEPARATE SUBCATEGORIES

PC-11PROPOSALS


TWO SEPARATE SUBCATEGORIES ASSOCIATED WITH FUEL ECONOMY WITH CORRESPONDING PERFORMANCE LEVELS:

1. Preserves historical heavy-duty oil criteria (PC-11A)

2. Provides fuel economy benefits while maintaining durability (PC-11B)

NO TEST FOR FUEL ECONOMY

KEY OBJECTIVE: NO COMPROMISE IN ENGINE LIFE OR

PC-11PROPOSALS


IN ENGINE LIFE OR DURABILITY

IMPROVEMENTS IN FUEL ECONOMY ACHIEVED FROM LOWER VISCOSITY OIL

SHELL LOW VISCOSITY (LOW HTHS) FIELD TRIALS


SHELL’S INDUSTRY-LEADING FIELD TRIALS LOG MORE THAN 25

MILLION MILES PER YEAR IN

NA AND OVER 40 MILLION

GLOBALLY (64 MILLION Km)

TESTING HEAVY DUTY ENGINE OILS

THAT’S THE SAME AS GOING

AROUND THE EARTH MORE

THAN 1,600 TIMES PER YEAR

WE TEST FOR:


MODEL

MODEL YEAR

CONDITIONS

APPLICATIONS

LENGTH OF HAUL

INDUSTRY

GASOLINE

LNG

NOVEL ADDITIVES

LOW VIS PROTOTYPES

FUEL ECONOMY

AND MUCH, MUCH MORE

FIELD TESTING OVERVIEW

RANGE OF ENGINE MODEL YEARS AND OPERATING CONDITIONS

On-Road Long/Short Haul,

Construction/Mining,

Agriculture, DPU, Gasoline,

IT IS SHELL’S BELIEF THAT OUR COMMITMENT TO, AND SCOPE OF, OUR GLOBAL FIELD TESTING PROGRAM IS UNPARALLELED WITHIN THE INDUSTRY Agriculture, DPU, Gasoline,

Biodiesel, LNGTHE INDUSTRY

SHELL LOW VISCOSITY FIELD TESTING


RIMULA R5 LE 10W-30 TEST EXPERIENCE

SHELL INTRODUCED RIMULA R5 LE 10W-30 IN 2009

� Semi-Synthetic, meets API CJ-4 + full range of OEM specifications

� First 10W-30 to be listed on Detroit Diesel 93K218 approval list

� Provides fuel economy benefit vs 15W-40� Provides fuel economy benefit vs 15W-40

� Field tested extensively to demonstrate durability compared to 15W-40

� Over 19 MILLION MILES of field testing

• As an example, up to 829K miles (1,326K kilometers) were already driven by early 2012 in DDC DD15 (2009) with good wear control results

• Similar tests had been performed in Navistar MF13 (2010) EGR

• Engine hours accumulation has continued with great success

SUMMARY� Emissions regulations have driven a large

proportion of the technical development over the last 20+ years

� The future focus is on delivering fuel economy benefits while keeping emissions low and delivering the same as or better durability

Drive toward lower viscosity “thinner oils”


� Drive toward lower viscosity “thinner oils” to help provide fuel economy improvements and emission reduction.

� Shell is actively involved with leading and helping to develop the next generation performance standards for heavy-duty engine oils.

� Shell is well positioned in the development of next generation engine oils.

r5 e trial 2 changeover from rimula •energy saving …€¦ · drivers for hddeo technology...

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